1. Best Practices FX Business

2. Pre-trade preparation and documentation

3. Know your customer

4. Determine Documentation Requirements

5. Agree upon trading and operational practices

6. Agree upon and document special arrangements

7. Trade capture

8. Enter trades in a timely manner

9. Use Straight Through Processing

10. Use real time credit monitoring

11. Use standing settlement instructions

12. Operations should be responsible for settlement instructions

13. Review amendments

14. Closely monitor off market and deep in the money option transactions

15. Confirmation

16. Confirm and affirm trades in a timely manner

17. Be diligent when confirming by non secure mean

18. Be diligent when confirming structured or non standard trades

19. Be diligent when confirming by telephone

20. Institute controls for trades transacted through electronic trading platforms

21. Verify expected settlement instructions

22. Confirm all netted transactions

23. Confirm all internal transactions

24. Confirm all block trades and split allocations

25. Review thirty party advices

26. Automate confirmation matching process

27. Establish exception processing and escalation procedures

28. Netting

29. Use online settlement netting systems

30. Confirm bilateral net amounts

31. Employ timely cutoffs for netting

32. Establish consistency between operational practices and documentation

33. Settlement

34. Use real time nostro balance projections

35. Use electronic messages for expected receipts

36. Use automated cancellation and amendment facilities

37. Implement timely payment cutoffs

38. Report payment failures to credit officers

39. Understand the settlement process and settlement exposure

40. Prepare for crisis situations outside your organization

41. Nostro reconciliation

42. Perform timely nostro account reconciliation

43. Automate nostro reconciliations

44. Identify non receipt of payments

45. Establish operational standards for nostro account users

46. Accounting / financial control

47. Conduct daily general ledger reconciliation

48. Conduct daily position and P&L reconciliation

49. Conduct daily position valuation

50. Review trade prices for off market rates

51. Use straight through processing of rates and prices

52. Unique features of foreign exchange options and non deliverable forwards

53. Establish clear policies and procedures for the excise of options

54. Obtain appropriate fixings for non standard transactions

55. Closely monitor option settlements

56. General best practices

57. Ensure segregation of duties In Front, Middle & Back Offices

58. Ensure that staff understands business and operational roles

59. Understand operational risk

60. Identify procedures for introducing new products, new customer types or new trading strategies

61. Ensure proper model sign off and implementation

62. Control system access

63. Establish strong independent audit / risk control groups

64. Use internal and external operational performance measures

65. Ensure that service outsourcing conforms to industry standards and best practices

66. Implement globally consistent processing standards

67. Maintain records of deal execution and confirmations

68. Maintain procedures for retaining transaction records

69. Develop and test contingency plans